There are nearly a quarter-million small businesses in Arkansas, and they employ more than 47% of workers in the Razorback State.1 Whether these companies are small construction firms or self-employed accountants, they all need the protection of business insurance.
Business insurance in Arizona is essential because it can help cover unexpected expenses when things don’t go as planned. For example, it can assist if your business is faced with:
NEXT is 100% dedicated to small business and insures more than 1,300 types of small businesses and self-employed workers. We make it easy for you to get the right coverage at the right price and purchase your policy online in less than 10 minutes.*
Continue reading to learn about important types of business insurance in Arkansas. Or get a free instant quote to see customized coverage options for your business.
Insurance companies typically sell Arkansas businesses coverage in packages customized for your needs.
Depending on your profession and business operations, your insurance package might include different types of insurance, also called insurance products or policies.
Each kind of insurance provides protection for specialized situations. For this reason, it’s a good idea to purchase all the kinds of coverage required for your business needs.
For example, general liability insurance can help protect against financial losses if you’re accused of causing physical injury to a non-employee or damaging their property. However, if one of your employees gets hurt on the job, you would need Arkansas workers’ compensation coverage.
Other types of business insurance coverage purchased in Arkansas include professional liability coverage, commercial auto insurance and commercial property insurance.
Arkansas general liability insurance is frequently the first type of coverage purchased by small businesses in Arkansas. It’s required by many commercial landlords and clients as a condition of doing business with you.
A liability policy can help protect your business if someone other than an employee claims that you caused bodily injury or property damage. It can help pay to settle the claim or, if you’re sued, assist with legal defense fees and related damages.
Here’s an example of how Arkansas general liability insurance can help a small business:
A homeowner says that an appliance store employee in Little Rock incorrectly installed a washing machine, causing water damage to a hardwood floor. General liability insurance could help the business owner reimburse the client for the cost to replace the ruined flooring.
Owners of construction and cleaning companies might want to add an optional general liability upgrade called tools and equipment insurance. This kind of coverage is designed to protect business gear that is stolen, lost or damaged outside of wear and tear.
If your business employs three or more people, you’ll probably be required to carry Arkansas workers’ compensation coverage.2 If an employee gets hurt on the job, this type of insurance can help cover medical costs, physical therapy and a portion of lost wages while they recover.
For instance, a worker at a Fort Smith construction company is hurt by a falling object at a job site, needs an ambulance and stays in the hospital overnight. Workers’ comp coverage could help pay for the employee’s medical expenses and help cover lost wages while they’re unable to work.
Companies that own vehicles need to have commercial auto coverage in their Arkansas insurance packages. That’s because personal auto insurance won’t cover accident damages that happen while driving for business purposes.
Here’s how commercial auto insurance can help small businesses by assisting with towing, collision damage and medical costs:
An employee of a Bentonville-based plumbing company wrecks on the highway during a snowstorm and severely damages a van. Commercial auto insurance could help pay to repair or replace the vehicle and for medical attention if the plumber is hurt.
Hired and non-owned auto insurance is a type of coverage that helps pay for accident damages in vehicles that are not titled to your business. Companies that ask employees to drive their own cars for business or rent vehicles will want this optional add-on to commercial auto coverage.
Many Arkansas businesses purchase commercial property insurance to protect their business property, inventory and physical premises. This type of coverage can help pay for damages after a covered event, such as water, fire or wind damage.
For example, a sprinkler malfunction at a Hot Springs womens’ boutique damages the clothing for sale and ruins store fixtures. Commercial property coverage could help pay to replace the inventory and the damaged fixtures.
It’s important to read your policy documents carefully to make sure there aren’t exclusions for your business. Many carriers don’t cover flood and hurricane damage.
Professional liability coverage, which is also called E&O or errors and omissions insurance, can help your business if you’re accused of professional negligence. It can help pay legal defense fees or settlements after claims of work mistakes, missed deadlines or incomplete work.
For instance, a real estate agent in Fayetteville accidentally sends prospective buyers to the wrong address for an open house, and the seller later files a lawsuit for professional negligence. Professional liability insurance could help the agent’s company cover legal costs and pay for damages.
Coverage costs for your Arkansas-based company will depend on your business insurance needs and business operations. Every business has different coverage requirements, potential risks and unique circumstances that will affect the price you’ll pay.
Your business insurance cost will depend on factors including:
If your business is routinely exposed to the risk of injury, property damage or other types of accidents, your insurance costs may be higher. For example, insurance for a construction worker will be priced differently than for professional services workers like IT consultants.
Business insurance will cost more as you add policies to your insurance package. Most businesses need more than one kind of coverage to protect them in different situations.
Businesses with higher employee numbers should budget more for workers’ comp insurance, as pricing is based on staffing. For the most accurate quote, be sure to provide your exact headcount.
The best way to explore coverage options and find out how much you’ll pay for a business insurance policy is to get a free instant quote from NEXT.
You can also use our insurance calculators for a general estimate of insurance costs in Arkansas:
We offer a fast and easy way for small business owners to get a business insurance quote online, purchase coverage and instantly share a certificate of insurance. The entire process usually takes less than 10 minutes.
You can also chat with our U.S.–based NEXT licensed insurance agents if you need help or have questions.
1 U.S. Small Business Administration
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